And (especially in the case of the top tech companies, like Google, MS, and Amazon) as a hedge against the competition. Employee X may be under-performing rela

And (especially in the case of the top tech companies, like Google, MS, and Amazon) as a hedge against the competition. Employee X may be under-performing relative to their peers, but if they're still going to perform 1.2X the average of your closest competition were they to change companies, you pay them to keep their ass out of the other guy's seat.